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How Do Government Policies Impact the Renewable Energy Industry?

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Jane Marsh's picture

Jane Marsh is the Editor-in-Chief of She covers topics related to climate policy, sustainability, renewable energy and more.

  • Member since 2020
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  • Aug 17, 2021

When Joe Biden entered office, he introduced the Build Back Better plan. Its goal is to reduce greenhouse gas emissions and generate a carbon-neutral nation. The plan enhances sustainability standards and provides trillions of funding dollars to the clean energy sector.


Researchers predict a limitation on fossil fuel use in the near future. Biden plans on developing an electric grid powered by renewable energy sources. Other government policies also impact clean power production, also enhancing climate change prevention efforts.

The Paris Agreement

The President also signed the U.S. onto the Paris Agreement during his first day in office. It signified our national commitment to carbon emission reductions. The agreement works towards a global temperature reduction by two degrees below pre-industrial levels.


Reaching the goal requires an acceptance of current emissions as the peak of ecological degradation. We must transition our energy reliance away from fossil fuel-derived sources, decreasing atmospheric pollution. Our commitment to the Paris Agreement and the establishment of the Build Back Better policy influenced the electric grid’s development.


Currently, 80% of the U.S. power supply originates from fossil fuels, like coal and natural gas. The government hopes to decrease the percentage by prioritizing renewable energy uses. An electric grid can access 100% clean electricity sourcing, creating zero emissions in production.


An increased need for the production and distribution of renewable energy influenced advanced storage development. Inadequate containment methods generate 80% of solar energy waste. We can preserve the efficiency of clean power systems and enhance mass sourcing by improving the technology.

Environmental engineers and scientists developed an effective storage device in Monterey, California, improving the accessibility and support of clean energy. They converted an old power plant into a lithium-ion battery storage facility. An old smokestack now holds a 300-megawatt battery, storing and producing renewable electricity to support local community needs.


The U.S. plans on developing large-scale versions of the storage facility, supporting the electric grid. Without Biden’s incorporation of greenhouse gas reduction policies, our reliance on fossil fuels would remain the same. His government efforts influence technological advancements in the industry.

The Affordable Clean Energy Rule

The oil and gas industry powers the transportation, industrial and electrical sectors. In 2009, congress recognized the adverse ecological effects of our firm reliance on fossil fuels and initiated change. Government officials labeled the energy source’s emissions as a cause of endangerment.


The Environmental Protection Agency developed the Clean Power Plan, decreasing the nation’s generation of harmful emissions. It regulates oil and gas-powered electricity plants, restricting their atmospheric pollution. The plan influenced each state to take carbon reduction measures.


Some states utilized carbon capturing, and others enhanced their reliance on renewable energy sources. Unfortunately, the Trump Administration placed a halt on the plan’s government functions. When Biden entered office, he re-established it under the Affordable Clean Energy rule.

City Policies

City officials establish ambitious climate change prevention measures on a more localized level, enhancing clean energy production. New York City generated the Green Building Program, regulating energy use and pollution development on construction sites. The city established an ambitious sustainability goal, utilizing 100% renewable power by 2050. 


The Program regulates surface and atmospheric pollution produced by construction companies. It also influences the establishment of solar panels and energy-efficient appliances in new developments. Mandating renewable energy production sources on building sites can significantly enhance local production rates.

Los Angeles also established local government regulations, decreasing the city’s ecological impact. Officials plan on reducing atmospheric pollution levels by 40% in the coming decade. They developed the California Green Building Code, enhancing the city’s sustainability.


The code requires new building projects to rely on electricity rather than fossil fuels. Builders must place electric car charging ports in newly developed homes, helping residents access zero-emission transportation methods. They also must add electric appliances inside, preparing a property to adopt a renewable electric grid.

Future Regulations

As the U.S. develops the electric grid using renewable sources, we can expect increased fossil fuel regulations. Researchers predict a mass shift away from greenhouse gas generating energy sources, making clean electricity the only accessible option. We may also experience limitations on emission-producing technology in the future, increasing our reliance on green technology.


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